JPMorgan Deposits N50bn in CBN For Merchant Bank Licence

JPMorgan Chase & Co. has deposited 50 billion naira ($38 million) with the Central Bank of Nigeria (CBN) as it moves closer to a banking licence in Africa’s most populous nation, Bloomberg reported, citing people familiar with the matter.

The deposit is one of the final regulatory requirements for approval. It signals that the largest US lender is ready to launch a merchant-banking operation in Nigeria if its application succeeds. The sources who asked not to be named because the process is private, told Bloomberg.

The amount matches the minimum capital the CBN set in its March 2024 recapitalisation rules for a merchant bank, against 500 billion naira for a commercial bank with international authorisation. The deposit does not guarantee approval. Bloomberg reported that the bank expects its licence by the end of 2026 or early 2027.

The development follows JPMorgan’s public announcement of its plans earlier this month. Its West Africa managing director, Dapo Olagunju, said on October 8 that the bank intends to open a merchant bank before the end of 2026, subject to regulatory approval. JPMorgan plans to convert its Lagos representative office, which opened in the 1980s, into a full-service branch.

A merchant banking licence would let JPMorgan offer dollar loans to large Nigerian corporates that have limited access to foreign currency financing. The bank was also among the arrangers of Nigeria’s $2.2 billion Eurobond issuance in 2024.